Insights from the American Customer Satisfaction Index

Competition Boosts Satisfaction for Wireless Phone Service

As contracts fade in the wireless phone service marketplace, customer satisfaction surges—proof that choice matters in the battle to win over consumers. The industry’s ACSI score climbs 2.8% to 73 this year, with carriers engaging in more competitive price wars.

Compared with other telecom categories where consumers have little choice, the wireless industry shows that when companies fight for customers, good things happen: prices are competitive, service improves, and customer satisfaction is higher. Decades ago, landline phone companies were fully immersed in price wars to win and keep customers. Today, unlimited data and no contracts are hallmarks of the new battleground, and the wireless industry is truly competitive again.

Smaller wireless carriers set the bar with a 3% gain to an ACSI score of 79, followed by prepaid provider TracFone Wireless at 77 (+3%). Likewise, Verizon Wireless and U.S. Cellular climb 4% and 3% each to 74, while Sprint hits an all-time high of 73 (+4%). T-Mobile ties with Sprint and is the only company to move in the opposite direction (-1%). AT&T Mobility is at the bottom of the category (+1% to 72). As new competition arrives from companies like Comcast via its Xfinity Mobile, consumers will have even more options as they increasingly eschew landline in favor of wireless phone service.